Photo: Steve Kovach, Business Insider
Amazon’s shares tanked for a minute today when a Bloomberg report said it had fewer Prime subscribers than analysts expected.The trick about the report? It was based on data from early October, which is a month and a half before Amazon released the Kindle Fire, one of the key things driving Prime subscriptions.
Every person that signs up to use a Kindle Fire, gets a month of Prime for free. If they forget to cancel the Prime membership at the end of the month, they’re charged $79 for an annual subscription to the service which offers streaming and free two day shipping.
Anyway, Amazon only had 3-5 million Prime members in October, according to Bloomberg. It wants to have 7-10 million users by the end of the year.
The stock is down 1% on the news because analysts thought Amazon already had 10 million users.